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Bank of America is the fourth largest US bank to publish quarterly results. Like its domestic competitors, it benefits from US tax reform and rising interest rates. Their profits also jumped thanks to savings in the second quarter of a third to $ 6.8 billion, announced Monday the US bank. Customer deposits and credit demand have increased. Consolidated revenue decreased 1% to $ 22.6 billion, as last year 's divestment sales boosted revenues. "Over the next twelve months, we want to repay $ 26 billion to our shareholders through dividends and share buybacks," said Paul Donofrio, chief financial officer of the company. dropped to 21 percent from 35 percent. In addition, interest rates are rising across the Atlantic and generating net interest income for banks. Bank of America is more exposed to interest rate fluctuations than other institutions because of its strong retail and mortgage activities.
Bank of America has also succeeded in increasing its activities on the financial markets. Deutsche Bank, on the other hand, said Monday morning that its revenues in the field of sales and trade had fallen in the second quarter by about 15 percent.
JPMorgan Chase, the largest US bank, released its latest interim results last Friday. In the second quarter, although earnings were not as high as at the beginning of the year – but with an 18% increase to $ 8.3 billion, it was higher than planned.
Citigroup surprised in the second quarter strong profit jump. The net result was a surplus of $ 4.5 billion, or 16% more than a year ago. The bank, like JPMorgan, benefited from its broad positioning. In addition to the lucrative business of the capital market, the private customer sector has also lost more. Overall, the institute's revenues – so-called income – rose 2% to $ 18.5 billion.
The rival Wells Fargo, on the other hand, had to make significant cuts. Compared with the value of the previous year, quarterly earnings fell nearly 12% to $ 5.2 billion. Chief Financial Officer John Shrewsberry was responsible for a special tax burden of $ 481 million. But profits also dropped by about 3% to $ 21.6 billion. After various scandals related to dubious business practices, Wells Fargo struggles with image problems and has recently had a lot of problems with the authorities.
Even the world's largest badet manager gained more in the second quarter. Adjusted operating profit increased from $ 1.25 billion a year ago to $ 1.44 billion. Blackrock managed $ 6.3 trillion at the end of the quarter ($ 5.69 trillion).
Surprisingly high profit for Deutsche Bank
While the four largest US banks together achieve a quarterly profit of just under $ 25 billion, Deutsche Bank in crisis must settle for $ 400 million in quarterly profits. This is more than expected.
Under the leadership of his new boss, Christian Sewing, Deutsche Bank is expanding its business and losing thousands of jobs, especially in distressed investment banks. The bank recorded the third annual loss in 2017 and only realized a mini profit of 120 million euros in the first quarter. Sewing, who replaced John Cryan in April, plans to reduce the number of full-time jobs to less than 90,000. The bank is on the right track: the number of full-time jobs has dropped by 1,700 to 95,400, he said.
Slightly better figures include lower costs and reduced legal provisions. 19659013] (APA / dpa / Reuters)
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